agency for fundamental rights that's he believes europe is doing all it can to protect human rights. michael of well come to a conflict so in a recent report the agency has said that civil society is under threat across the block the report paints a paltry picture of the state of fundamental rights within the european union it's a mixed picture it's a picture of what's working and what's not working we have to stay very vigilant in europe just like everywhere else in the world to protect the incredible institutions we develop that's. second world war as every word in the word our foundation the idea of the european union human rights democracy and it's not getting better it's changing we have some improvement it's a very diplomatic world changing to a good changing to the bad change to the good in some places but right i am very concerned about the situation of human rights in europe today we have a lot to do across so many issues so many groups migrants older people at the disabled there's a huge program of work to be done but much the challenges with the achievements that you have

why do you think -- europe is the countries in europe are among the u.s.' top investing countries.so why do you think european companies invest here? >> well, fritz and for most because you're a large market. you're 350 million people and you're one of the wealthiest markets in the world, after europe. we're probably the wealthiest, we're 500 million people. you're 350. so, people want to be close to the market. that's they basic law of investment. makes sense to invest here and create stuff here. i just noticed -- i don't want to blind people with science because numbers can mean anything but affiliate sales here in europe of our companies amount to about 2.4 trillion, which is many multiples at what we actually export to the united states. the same is true by the way for europe. your companies -- your affiliates sales in europe are nearly $3.1 trillion, which, again, is bigger than all of your expert exports to the relevant e rest of the world. ours is an investment relationship, even more than a trade relationship. also a trade relationship and also an investment relationship, a

western europe. i think if you feel over eight or nine months that that set of actions is a pause, then i don't know how you would care it with anything else in recent political history. by november, over the first eight or nine months, you have the u.s. well positioned on nato, germany, u.s./e.c. relationships. to compare that with today, i think we have a world where trump is ambivalent about alliances. i think the generals will generally hold him in line. trump prefers transactional policies. strong leaders of an authoritarian nature may be easier for him to deal with. one of the questions going back to the wilsonian period, i wonder whether we might be moving back to a period more like 1900 or the 1920s where you have maneuvering of great powers if this system doesn't continue. fourth point, prudence and respect. bush and baker were not triumphant. bush was reserved when the berlin wall came down as the most obvious example of this. they both tried to listen and understand the perspectives. an im

achieve on top if europe and our budget in europe has to. make a major contribution to this when looking at the region we have to make sure that the new e.u. budget will also guarantee a good strong policy of less developed countries require continuing to support our e.u. a structure of still considered to be of benefit to all member countries so that whatever challenges there all of our can be tackled that is again a question of its own internal logic that it is the way we understand this solidarity is not a one way street. it is up to every single member country never to lose sight of being responsible for the home which also includes we must make sure we maintain our joint values which after all is what the european union is based on in makes it even more original tomorrow's meeting or informal meeting of the type to seventy heads of state and government we will also look at how to promote your ally dialogues among the citizens that is one way in which we try to get. more into the day to day awareness of people i think that's a very impor

, for western europe. feel, over eight or nine months, that that set of actions is a pause, i don't know how you would compare it with anything else in recent political history. in a sense, by november, within the first eight or nine or 10 months, you have u.s. ,ell-positioned nato, germany even baker talks about the csc with comingto deal home by december. i think the generals would generally hold him in line. leaders may be easier for him to deal with. one of the questions going back a little bit to the discussion of the wilsonian period, i wonder whether we might be moving back to a period more like 1900 of the 1920's, where you have a newer bearing -- maneuvering of great powers. fourthly, prudence and respect. bush and baker were not triumphant. the berlinrve, when wall came down, is the most obvious example of this. they tried to listen and understand the perspective. an important part of diplomacy is to help create expeditions for your counterparts when they are in disarray. case fordefinitely the t

you asked, is europe important? it really does come down, as phil framed it nicely, there was a view in the schultz state department, which ridgeway represented, that a divided europe was fine. yes, the bush administration really did feel, and i can give you an example of this. in february of '89, we were thinking about german unification at the start of '89. you could see the forces that were breaking into it. so, frankly, if you are concerned about the german question, how they get unified peacefully and democratically with a stable security order, you do have to pay attention to europe. remember, when that moment struck, germany didn't have many friends in europe. >> to the audience, first, matt frakes and then eric manila. >> i wonder if you could all speak to the opportunities that were available in the late '80s and the early '90s for cooperation and partnership. i'm thinking for moments of crisis or anything else. this was a time of immense change and there were possibilities open that i don't think were imag

in scotland in in or out with the advent of europe. many countries many regions fear that they should have all identity of more of their local relive all right and we are after so in france a few other regions with a stronger than the less and forget that france is constituted of many different areas the basque region to britain region to front as region to some border region all of them with a strong identity which is contrary to the french tradition of uniformity within the country but of course you go you see has a head start because it is an island right as he say jpac there's been a lot of talk on the rise of separatist movements across europe in recent years there was a scottish referendum on independence in twenty fourteen of course which saw scott . and natalie vote against leaving the united kingdom in italy two northern regions voted last year to negotiate greater autonomy from rome and then there's of course spain catalonia controversial secession referendum in october last year political crisis including the arrests and cha

populism in europe as a whole? and what implications does that have for germany? job: i think it's a big risk. you can be pro-european like martin schulz and the stp and angela merkel, but this is part of the problem. a lot of the people in germany who vote for populist parties, they see their identity threatened. they see their government transcending sovereignty to the european union. so that's definitely a risk factor. if you can't get this people along in your story, you will have a problem in the long term. but i think the internal cohesion in germany is in risk. this coalition doesn't have any idea about multicultural society, integration of big groups of minorities. there is not much in this coalition agreement. those are the answers many germans who book for populist parties want to hear right now. melinda: clearly, the rise of right-wing populism in germany was one of the driving factors for at least much of the language that was put into the coalition agreement. leadersted by party that they had listened

before germany yeah and actually the first five pages of the agreement on europe before they move on to germany i think that's absolutely fascinating it's kind of a post nationalist statement and probably the first one of its kind in a coalition agreement so i have to say that is that is quite the amazing thing about this coalition agreement if you look closer though and playing devil's advocate here but if you look closer then you realize that they propositions are quite in concrete so that's a man i might call for example he proposed a shared asylum agency he proposed a shared finance minister budget to set the sense budget a set of troops for the european union all of this is not mentioned in the german coalition agreement and it's very in concrete and that's not concord in concrete that though is the fact that the s.p.d. will now hold the finance ministry they will hold the foreign and the finance ministry that is a very significant departure from the last. around coalition and there is certainly mention in the coalition agreement of greater investment in the european union inclu

is in the rest of europe. that has everything to do with the brexit process which has lurches in the progress they are making. but with that said, there is still underlying growth in the u.k. but one thing we are concerned about is trade on the global economic horizon. one of the benefits to the economic environment today has been the productive nature of trade and its inflation dampening capability. in fourth quarter of 2017 the u.s. economy grew at 2.6%. purchasing, individual, businesses and the government actually grew over 4.5%. but we had a 2% trade deficit. if we were trying to buy all 4.5% of purchasing growth from all u.s. companies we would have far more inflation because supply would be outstripped by demand. i'm not saying what the president is doing innis correct to make sure we have free and fair trade. but we worry if we swing too far in trade issues, the global economy which benefits from the free flow of goods and services may be impacted. but it is one of the things we are watching. maria: th

, for western europe. if you feel, over eight or nine months, that that set of actions is a pause, i don't know how you would compare it with anything else in recent political history. what else has government done in the first year that matches that level? by novemberse, within the first eight or nine or 10 months, you had u.s. well-positioned in nato, germany, even baker talks about the csce as a way to deal with the european coming home by december. to compare it to today, i think we have a world where donald trump is ambivalent about alliances. i think the generals would generally hold him in line. strong leaders may be easier for him to deal with. leaders of an authoritarian nature. one of the questions going back a little bit, to the discussion of the wilsonian period, i wonder whether we might be moving back to a period more like 1900 of the 1920's, where you have a newer bearing -- -- in maneuvering of great powers. fourthly, prudence and respect. bush and baker were not triumphant. bush's reserve,

is in the rest of europe.hat has everything to do with the brexit process which has lurches in the progress they are making. but with that said, there is still underlying growth in the u.k. but one thing we are concerned about is trade on the global economic horizon. one of the benefits to the economic environment today has been the productive nature of trade and its inflation dampening capability. in fourth quarter of 2017 the u.s. economy grew at 2.6%. purchasing, individual, businesses and the government actually grew over 4.5%. but we had a 2% trade deficit. if we were trying to buy all 4.5% of purchasing growth from all u.s. companies we would have far more inflation because supply would be outstripped by demand. i'm not saying what the president is doing innis correct to make sure we have free and fair trade. but we worry if we swing too far in trade issues, the global economy which benefits from the free flow of goods and services may be impacted. but it is one of the things we are watching. maria: ther

well europe is happy because we have now a good signal from. everybody was waiting for the outcome of the bill and. now we can go for water. and having in mind what is written on the coalition agreement. the end of a pro european government in building though the open hand approach the commitment from our crawl towards germany to start to build up a new and a strong and a new wave of europe that is has now a partner in building so i think europe is happy until now your conservatives have held the finance ministry which is obviously a very important post and if reports are correct then the social democrats would take that post are we going to see a shift in germany's euro zone policy. no we will not see a shift because when you read the outcome of the coalition talks the coalition agreement that it's clearly mentioned that sustainability criteria is for the euro will be not touched and the whole approach of rescuing the euro off of the big prize in two thousand and eight and nine is confirmed again by this coalition text so there will be no fund

this is daybreak: europe.k for another five-year term. the yen rises to a 15 month high. investors withdrew more than $6 billion from u.s. junk-bond funds last week. meanwhile, the rise in yields, china increases holdings in treasuries last year for the most in seven years. south africa's new leader, newly isrn in president ramaphosa expected to deliver his first state of the nation address today. 7:00 a.m. in london, happy new it is the year of the rooster. it is a sleepy lunar new year. away from theors roulette table of the equity markets. they might be enjoying themselves in london. investorses, global cautious on the u.k.. he wants to buy the u.s. on dips, sell the rallies on europe. the dax futures are down by 49 pips. the market is absorbing what ray dalio is doing. germany'serned about merkel, and also the ecb, you in macedonia.eech paris futures up 10 pips. futures are gaining. we had a dip at the start of the 6:00 show. we are back in the green. we have come out of the correction territory. equities

rough day for stocks europe ends in the red the dow tumbles a thousand points of the u.s. markets fall over three percent what's behind the new downward trend we'll get the view from wall street also coming up germany has just reported bumper trade figures but that's unpalatable makers they just can't keep up and turning off ukraine's tap the country will miss out on vital natural gas in combat as the north into pipeline between russia and germany gets the go ahead. and done your winter in berlin this is your business update volatility has plagued the markets all week following a broad sell off on monday european shares closed in negative territory and thursday's session ending a short lived rebound germany's dax was the worst affected in europe closing down two point six percent in new york the dow finished over a thousand points of negative territory for the second time in a week analysts citing higher treasury bond yield as the catalyst for thursday's rollercoaster. quarter is tracking this from wall street for us so yes volatility continuing it looks like investors are

in southern europe. not hearing much from them anymore as everything's safe now no not at all i mean we heard a lot from italian banks last year i mean one deposit the sienna and the toxic credits and essence in its balance sheets so this is still an outcome out of the financial crisis from two thousand and seven and two thousand and eight and it's not been solved in southern europe why has it not been solved it because i mean take take the basel agreements on soaring death caps in the balance sheets not been solved as a structural reforms have not been solved and on the other hand obviously the banks scrutinise and squeeze by new problems take the fin text the bitcoin situation the out coins so the entire digitization issue in banks so business models are not yet there i mean take your bank's last week's announcement so you don't really see a new business model for these banks in particular in southern europe advice really sleeping on these new trends on on on bitcoin on you mentioned fin take. i don't

we cannot do that if we deal with europe and trading with europe to the extent we already do.extent we already do. there is just no way you can compete against them in those areas and the europeans have made it clear they will be very careful during the transition and beyond, especially if we have an arrangement, what we do ourselves with regulation. if we compete against them including financial services, may be repercussions will come as a result. from your perspective, how is this process going? not moving fantastically fast, frankly. the europeans have said you cannot have your cake and eat it. what they mean is yes, we might have some revolution standards but generally we have to accept the standards we have. to a very considerable extent because the uk has developed a number of standards that exist in europe, have benefited from this usually. they have become international standards. businesses say what they don't want is different standards. 0ne say what they don't want is different standards. one thing for the uk and something else for europe. thank you very much indee

it was like eastern europe first.you mentioned that. it was like eastern europe first. because when you read the discussions in terms of deliberations before the london g7 meeting before gorbachev came, the question was to crack down on europeans who wanted to rechannel the aid to gorbachev. and the position of president bush was, no, we have to help eastern europe first. you touched on that. is it too far that we call it eastern europe first and soviet union second? and do you think that gorbachev would never get aid and why would he continue to behave that way if he would? >> i didn't hear that. >> did gorbachev understand in '91 that he was not going to get western aid? >> and if he didn't, why did he act as if he did? >> well, i guess he understood after a while that he wasn't going to get it. i mean it took a great deal of determination and courage to ask for it in the first place. you know, initially, i think it was other people around him who named numbers and gorbachev put is it more generally like if you spent x billion of dollars in the gulf war, can't you spa

europe down 1.5%. u.s.ointing to a positive start, that it's incredibly early to take serious note of what's happening. let's find out which stocks to pay attention to this morning. nejra: worst performer is ap muller mark. we have some numbers for you. the full-year underlying profit coming in at a mess. the company says it sees profit growth for 2018 after what it described as an unusual year in 2017. at the moment, the market focusing on the negative. lower,y also moving another one of the worst performers. of atargeting 2020 income least one billion euros. perhaps with the market is focusing on is the float is coming in disappointing. amundi is lower and i'm the upside -- on the upside, i'm looking at l'oreal. light sales growth was also up beat. what the market seems to be focusing on is the ceo says they are ready to buy nestle's 23% stake. they think it would boost l'oreal by 10%. l'oreal trading higher at 1.8%. guy: thank you very much indeed. some news coming out of asia. china is looking to start

"fokus on europe"'s susanna dorhage has the story.usanna: until a few days ago, aziz sold kosher groceries to the jewish community in the paris suburb of creteil. now nothing is left of the shelves. an arsonist destroyed the shop aziz spent years building up. aziz: this was my baby. i worked hard here in this store, 12 to 15 hours a day to build it up. and now it's been reduced to nothing. susanna: aziz doesn't want to show his face because he's afraid of further attacks. for weeks, unknown vandals have been smearing swastikas on jewish shops, including the one aziz ran. but aziz himself is not jewish -- he's a muslim berber originally from algeria. aziz: i felt as if someone had painted a swastika on my back. it's not just the property damage -- i feel threatened personally. now i have a better idea of how the jews feel. susanna: about 15,000 jews live here in creteil, together with a much larger muslim community. in recent years, there have been repeated attacks on jews, mainly by young muslims. but hardly anyone wants to talk openl

europe. and within europe we are working ever more closely with our european partners bringing the influence and impact that comes from our full range of global relationships. and we want to continue this cooperation as we leave the european union. the british people took a legitimate democratic decision to bring decision making and accountability closer to home. but it has always been the case that our security at home is best advanced through global cooperation working with institutions that support that including the e.u. . changing the structures by which we work together should not mean we lose sight of our common aim the protection of our people and the advance of our common interests across the world so as we leave the e.u. and forge a new path for ourselves in the world the u.k. is just as committed to europe security in the future as we have been in the past europe security is security and that is why i have said and i say again today that the united kingdom is conditionally committe

they basically want the united states of europe.icy, which she and her others have already started has been brexit because the british joined a football clubs and then the euro union decided to play golf. guy: i have never heard brexit described that way but it is certainly an interesting way of thinking about it. one thing about this grand coalition or small coalition is that there is a desire to spend money. it does seem as if this is the sort of single debtor of the whole thing, spending some of the hard-earned gains over the last few years. do think they are on the right course there though? at thismany to invest point in time -- does germany need to invest at this point in time? >> they are basically trying to spend more money for social programs. independentd an analysis of this coalition program and of come to the result that 70% of the entire program is actually coming from the social democrats. they are even the smaller partners. this coalition and my view, is not really one which will improve german competitiveness in the

we haven't had a real credit market in europe ever since that time period.is a policy to hold everything together so you buy time for the fiscal and political side to work itself out, so the bond market signals are not real price signals. nick, the spread of months ago today, we talked about where the spread would go after an election, but why are we so much more comfortable? nick: when you look at levels of support in a country like italy, one reason is italy itself has healed very much in terms of the economic profile. we know the result of the italian election, when you look at italy's political dislocation,. it is nothing new. . is a very well-run country with a budget deficit, so when you look at that spread, it goes a lot tighter, and our target for that is 80 basis points. it sounds aggressive, but all that does is put the spread back to 2015 levels. morehan: are you much comfortable looking at the situation in europe, do you much prefer to take the risk with the periphery with the likes of italy? absolutely, you take the periphery risk. next, jeff, a

bill in the finance ministry was structured europe now the s.p.d. has got that too so this is quite incurred i mean i'm i magine champagne bottles of popping all over the palace and the ballet mall the siege of the european commission in the last insane fact one person who has been waiting a very long time for a german government to get up and running is french president emmanuel mccall in a speech at the store bun last september he outlined his vision of europe's future including a common strategy on financial foreign and defense policy he said quote i don't have red lines i have only horizons americal and martin schultz agree on many european policy issues including the implementation of e.u. reforms and strengthening the european economy against increasing international competition so will the new ground coalition if it indeed comes to power be able to take bold new measures on european and foreign policy you know mr mccall actually time to that speech that we just saw excerpts from to coincide with the german election in the hope of influencing

but it looks bad for socialists all over europe. of course will continue to exist but perhaps as a small party that's dependent on others. it's a far cry from what we'd hoped for. but the two men this. many young socialists have joined president a man who while mcconnell's party lour a public all marsh or drifted to the extreme left but a small group is trying to save the socialist party teacher maxime bar you is among them he's a village councillor who is continuing the party's work at the grassroots level he strictly against forming an alliance with microphones party. are they all of one thing with it today is a complete right wing outfit all right that is into the mix right wing policies that benefit the super rich and of course at least in germany the young socialists position themselves against the grand coalition for. the young people were the only ones that thought they knew they'd have to sell their souls to come with malcolm. at all when it isn't all. the way he didn't leave maybe china is convinced that the socialists have

the fundamental story in europe has changed.cial crisis until maybe just a year-and-a-half ago, we had weak economic fundamentals and pronounced time of political uncertainty. with the more solid fundamental bases we have at the moment, it in termse big reaction of tail risk from up local risk of it. i'm not saying it is relevant, but i think the likelihood is that we are going to see this past. even if we get a nasty outcome or unexpected outcome, i think markets will take a wait and see view before we see -- how risk looking at reversal pricing, how the market is hedging this. i am trying to figure out whether anybody is free cap. i have two big political events at the same time. i have the voting germany, which we don't know which way it is going to go. then you have this italian election in which everybody seems so conflict. does this fit together? derek: when you go to previous political ovens in europe and you had big market moves, it was related to existential risks. guy: if i am an italian candidate, i am taking a lesson

nejra: are you looking at anymore potential acquisition targets in europe and specifically southern europea very nicee have platform throughout western europe and we think there is incremental ad on opportunities for we have been very inquisitive. we have seen opportunities that are very nice and commensal add-ons to this great platform we have today. nejra: any countries in particular you might be looking at? italy for example? rick: we have had a presence in italy for the past eight years. we think it's a fantastic market to sell in. likewise, france, germany, spain, the nordics. we think there is a tremendous opportunity here in the united kingdom as well. worldwide we think we have become the disruptive player for enterprises anywhere in the world to take their networking needs to gtt. vonnie: explain a little more the disruption. why are you the disruptor? i would imagine many ceos would like to claim that title. rick: true. we actually own and operate one of the world's largest global backbone networks. we are one of the top five internet backbones. we have some of the deepest fiber

can deal with it not this year just talk about rex it talk about the problems with eastern europe and many of the policy areas where is strong a stable hand in berlin really is needed a moment what about if it's killed i don't think germany will go up in flames if that occurs will have a caretaker government will get new elections then we will start another negotiating process there will be a government in place the wheels will continue to turn but what we won't have is a government capable of taking far reaching initiatives on crucial issues like making the country fit for the future in terms of digitalisation such as europe and there i think that for me would be the biggest disadvantage we need movement on europe now before you elections next year we need a government here in berlin in place that can take broad initiatives on europe and therefore we have to hope that enough s.p.d. members want to govern that they actually look at what's in this agreement or people who responded to the current here at the big table with me and in strasbourg france tonight of the european parliament o

the man europe needs but can barely stomach the post-coup crackdown orchestrated by trucks president underscored need today as the european parliament examines back countries human rights record. i'm sumi so much scandal welcome to the show north korea has staged a military parade and rally just one day before south korea opens the winter olympics the timing of the parade is being seen as a provocation usually a holes this parade in april to mark the founding of its armed forces a speaking at the parade route korea's leader kim jong il and set his nation had become capable of showcasing its stature as a world class military power to the rest of the world now this all comes as u.s. vice president mike pence a said the world should not become distracted by warming ties between south and north korea and it comes as the two nations are prepared to join up under a unit. flag at the winter olympics in chiang earlier today has landed in south korea after a visit to japan while there he said the u.s. planned to shortly unveil new aggressive sanctions against the north and he said washington

and shift sort of the economic spending power of germany somehow through as the south of europe with money and investment is sorely needed so he could have done nothing none of all of these if the grand coalition in berlin wouldn't have come together because it was the liberal party coalition as they said in germany it would have been very difficult so he really needed this it's important not only for you it's important for micron's own political survival medium term so yes happiness in paris happiness in paris this grand coalition two point zero is what i've called it it has a smaller majority then the previous grand coalition the a.f.d. the far right force is now in parliament what does this mean then for the business of governing and for getting things done the a.f.d. is an outlier nonetheless yes it's the biggest opposition party but i think the key question will be are they going to govern in the spirit in which this agreement was written they clearly have in mind the sense of many germans that the future is not secure that the sense that their children may not have it as good a

located in the heart of europe you are connected to the whole world. experience outstanding shopping and dining offers and try our services. biala gassed at frankfurt airport city managed by from a bought. this is the day of the news coming. live from berlin studios humanitarian catastrophe the deaf children besieged eastern ghouta is rising with no end in sight to the government's bombing campaign children are among the highest casualties. and as decision day for does it cause a german court is set to rule on whether to allow bans in the.